Robots that Think and Design Themselves?

This article from NewsObserver.com talks about robots that design
themselves.
Researchers from Brandeis
University have created the Golem Project, a system where tubelike
machines design themselves virtually in software. Then the virtual
robots are allowed to try out
their designs
in the real world for movement and locomotion. They like to call it robotic evolution,
however right now
it seems to be algorithms for finding out which design works better for
locomotion rather than truly
mutating the robot into a higher life form. Currently they have to
help
assemble the robots from the virtual design to the real world, but
someday
they hope that their robots will be able to do self-directed evolution
and build themselves. Once they can build themselves, will we
see the
first Terminator?